Rent to Own
When I hear the words rent to own they sound like an easy compromise between renting and taking on the financial responsibility to own and for some people, that’s just what it is. There are people who have made this solution work for them while rebuilding credit and retaining a home they like.However, renting to own is also more expensive than obtaining a conventional mortgage. With a conventional mortgage, all of your money goes towards paying both principle and the interest on the loan. A rent to own means that only a very small percentage of your money goes towards the purchase price of the house. Also, the option money which can be quite substantial doesn’t go towards paying the mortgage; it goes into the owner’s pocket.
